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After the news become public in 1865 that a Minnesota state geologist had found gold and silver-bearing quartz near Lake Vermillion, hopeful prospectors rushed to the area. It is estimated that more than 2,000 people came to the region, representing a huge European population surge for the Range.
This was successful, and Minnesota's iron industry centered on the Mesabi Range, where the taconite was much easier to access. In 1875, Philadelphia financier Charlemagne Tower, who owned extensive interests in the Northern Pacific Railroad, began to investigate the possibility of iron mining inland from the North Shore.